The Practical Significance of the Spending Multiplier Is That It

question 12

Multiple Choice

The practical significance of the spending multiplier is that it:

• A)brings about an equality of injections and withdrawals
• B)keeps inflation within tolerable limits
• C)magnifies initial changes in spending into larger changes in real output
• D)helps to stabilize the economy
• E)minimizes the unemployment rate

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Definitions:

Compulsive Hoarding

The urge to accumulate and hold on to familiar objects and possessions, sometimes to the point of their becoming health and/or safety hazards. This impulse tends to increase with age.

Material Items

Material items are physical objects that can be touched and owned, often used to fulfill needs or desires, including everything from personal belongings to commodities in trade.

Oldest-Old

Elderly adults (generally, those over age 85) who are dependent on others for almost everything, requiring supportive services such as nursing homes and hospital stays.

Infirm

Refers to a physical or mental weakness, often associated with aging or chronic illness, leading to reduced mobility or diminished health.